The upgrade reflects Vietnam's favourable medium-term growth outlook, underpinned by robust foreign direct investment (FDI) inflows, which Fitch Ratings expects will continue to drive sustained improvements in its structural credit metrics.
Fitch Ratings forecasts Vietnam will achieve a medium-term growth of around 7% thanks to its cost competitiveness, educated workforce relative to peers, and entry into regional and global free-trade agreements bode well for continued strong FDI inflows amid global supply chain diversification.
Fitch Ratings believes that as the Vietnamese Government continues to implement policies to support growth and stablise the macroeconomy, Vietnamese economy will regain growth momentum soon.
According to the Ministry of Finance, when the world economy is facing challenges relating to a slowdown in growth, economy, trade, and financial risks are increasing in countries, the upgraded rating of Fitch Ratings to Vietnam shows the international community's positive assessment of the direction and management efforts of the Party, National Assembly and Government of Vietnam.
The ministry will continue to coordinate with Fitch Ratings, other credit rating agencies, and international organisations to help them have a complete and updated assessment of Vietnam's credit profile./.
Source: vietnamplus.vn